Produce a statement of cash flows for Lavalier Communications, Inc. using the direct method and the account totals from the trial balance below.
|
General Journal |
||
|
Account |
Debits |
Credits |
|
CASH |
$6,490,001 |
5,433,450 |
|
SECURITY DEPOSITS |
4,000 |
0 |
|
ADVANCES TO SUPPLIERS |
250,000 |
250,000 |
|
ACCOUNTS RECEIVABLE |
932,500 |
641,000 |
|
ALLOWANCE FOR UNCOLLECTIBLES |
25,564 |
59,029 |
|
FINISHED GOODS INVENTORY |
650,000 |
645,000 |
|
PREPAID RENT |
4,000 |
4,000 |
|
INVESTMENT IN BONDS |
2,000,000 |
0 |
|
EQUIPMENT |
45,000 |
0 |
|
ACCUMULATED DEPRECIATION |
0 |
11,250 |
|
PATENTS |
2,000,000 |
200,000 |
|
ACCOUNTS PAYABLE |
215,450 |
315,450 |
|
PAYROLL TAXES PAYABLE |
120,000 |
120,000 |
|
COMMON STOCK |
0 |
1,000,000 |
|
PAID-IN CAPITAL IN EXCESS OF PAR |
0 |
4,000,000 |
|
SALES REVENUE |
0 |
1,697,125 |
|
INTEREST REVENUE |
$ 0 |
$ 131,126 |
|
COST OF GOODS SOLD |
645,000 |
0 |
|
SALARY EXPENSE |
480,000 |
0 |
|
COMMISSION EXPENSE |
70,450 |
0 |
|
PAYROLL TAX EXPENSE |
120,000 |
0 |
|
RENT EXPENSE |
44,000 |
0 |
|
UNCOLLECTIBLE ACCOUNT EXPENSE |
80,215 |
0 |
|
DEPRECIATION EXPENSE—EQUIPMENT |
11,250 |
0 |
|
AMORTIZATION EXPENSE—PATENTS |
200,000 |
0 |
|
PATENT LICENSE EXPENSE |
120,000 $ |
0 |